An extremely misleading report, especially the headline. Gold is not "running out", and it is perfectly normal for production to drop as prices increase as companies choose to mine lower-grade ore today and reserve the higher-grade ore for expected price drops in the future.
Salute the automobile: The greatest anti-pollution device in human history! (Just think of city streets clogged with a hundred thousand horses each generating 15 lbs of manure every day...)
Steve Saville's latest article (see main thread) gives a good case in showing that miner production and jewellery demand are very minor factors in the price of gold. The miners putting out 2000-2500 tons per year in gold is already spoken for and then some. The central banks have been supplementing the miner production to the tune of 500-1000 tons per year for the past 15 years to keep prices low. So now that they've basically stopped what happens? Who fills the shortfall of the central bank official sales and behind the scenes leases? Certainly the miners holding back choice ores has no effect on where the pog is going. If the people that already hold the more readily available 50,000-100,000 tons of gold supply do not wish to sell at $1100/oz (or even hundreds of dollars higher) then what? Once you sell off your gold then you have depreciating fiat to replace. And most any country's fiat can literally go to near zero overnight. The dollar handlers want to see an orderly decline over several years. But frankly there is no guarantee it won't get routed essentially overnight at some point in the near future.
Comments
Sounds almost chargeable unless they can prove that statement.
<< <i>Peak Gold. Mentioned at the all time high price.
Sounds almost chargeable unless they can prove that statement. >>
typical bad reporting. no where do i see the article writer trying to
find an opinion from other sources who could possibly refute the claims.
it is like a reporter needed to get his 750 words written that day and
did the least amount of work possible.
(Just think of city streets clogged with a hundred thousand horses each generating 15 lbs of manure every day...)
roadrunner